Buying guide
Buying equipment from an insolvency or liquidation sale
When a business fails, its equipment is sold to raise money for creditors. That can be a genuine opportunity, and it comes with a set of conditions that do not apply to an ordinary sale. Knowing them in advance is the difference between a good purchase and an expensive surprise.
Sold as seen, and it means it
Insolvency sales are almost always on an as-seen, no-warranty basis. There is no recourse if the machine does not work, because there is no longer a trading company to pursue. Inspect before you commit, and price the risk you are accepting rather than assuming you can go back.
Title is the question that matters most
An insolvent business may have had equipment on lease, hire purchase or retention of title. The office holder can only sell what the company actually owned. Ask explicitly what title is being transferred and what evidence supports it.
This is the single most common problem in distressed equipment purchases, and it is entirely avoidable by asking the question in writing before paying.
Deadlines are short and usually immovable
- Collection windows are often days, not weeks, because the premises are being surrendered.
- Access may depend on a landlord who is not party to your purchase.
- Services may already be disconnected, so testing under power may be impossible.
- Dismantling is usually the buyer's responsibility and cost.
Who you are actually dealing with
Establish whether you are buying from the office holder directly, from an agent acting for them, or from a third party who has already bought the lot. Each has different authority and different ability to answer questions about title and condition.
A licensed insolvency practitioner is regulated and traceable. An unnamed intermediary is not.